Mark Ratchford, University of Colorado, BoulderAtanu Sinha, University of Colorado, Boulder

This research attempts to provide new insights on price fairness. Findings suggest that a price increase due to a decrease (increase) in supply (demand) is fairer than a price increase due to an increase in consumer wealth. Second, perceptions of the fairness of a price change depend on whether the seller of the product is a retailer or an individual. Third, individuals expect to pay more than the price they deem to be fair. Lastly, given a wholesale price increase, a monopolist retailer’s price increase action is deemed fairer than that of a retailer facing competition.